DoD spent $23.2M on airlift services, with Berry Aviation Inc. securing the contract

Contract Overview

Contract Amount: $23,251,981 ($23.3M)

Contractor: Berry Aviation, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-11-30

End Date: 2016-08-31

Contract Duration: 275 days

Daily Burn Rate: $84.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF AFGHANISTAN FIXED WING AIRLIFT

Plain-Language Summary

Department of Defense obligated $23.3 million to BERRY AVIATION, INC. for work described as: IGF::OT::IGF AFGHANISTAN FIXED WING AIRLIFT Key points: 1. The contract value of $23.2 million represents a significant investment in fixed-wing airlift capabilities. 2. Competition dynamics for this contract are crucial to understanding price efficiency. 3. Performance context is essential to evaluate the effectiveness of the airlift services provided. 4. Sector positioning highlights the critical role of private aviation in supporting military logistics. 5. Risk indicators may include operational disruptions, cost overruns, or unmet delivery timelines.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific performance metrics and detailed cost breakdowns. The total award of $23.2 million for a 275-day period suggests a substantial daily operational cost. Comparing this to similar airlift contracts, especially those in contingency environments, would be necessary to assess if the pricing reflects market rates and provides good value for money. Without more granular data on the scope of services, aircraft types, and operational tempo, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to drive down prices and encourage innovation. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final price. A robust competition suggests a healthy market for these services.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of securing services at the most competitive price, preventing potential overspending associated with less competitive procurement methods.

Public Impact

Beneficiaries include U.S. military personnel and potentially allied forces requiring logistical support in operational theaters. Services delivered encompass nonscheduled chartered passenger air transportation, crucial for troop and cargo movement. Geographic impact is likely concentrated in areas of military operation, potentially Afghanistan given the data source. Workforce implications may involve the utilization of specialized aviation personnel and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational tempo or fuel prices exceed projections.
Risk of service disruptions due to aircraft maintenance, weather, or geopolitical factors.
Ensuring consistent adherence to safety and operational standards in a demanding environment.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Berry Aviation, Inc. has experience in government contracting, potentially indicating operational proficiency.
The contract specifies a firm fixed price, which helps control costs for the government.

Sector Analysis

The aviation services sector is critical for supporting government operations, particularly in defense and logistics. This contract falls within the broader aerospace and defense industry, which relies heavily on government procurement. The market for specialized airlift services can be competitive, with established players vying for significant contracts. Benchmarking this spending against other government airlift contracts would reveal its relative scale within the sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses and Berry Aviation, Inc. is not listed as a small business. Therefore, there are no direct small business set-aside implications. However, the prime contractor may engage small businesses for subcontracting opportunities, which would need to be assessed through subcontracting reports if available.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of USTRANSCOM and the Department of Defense's contracting officer representatives. Inspector General investigations could be initiated if allegations of fraud, waste, or abuse arise. Transparency is generally facilitated through contract award databases, though detailed performance reports may be less accessible to the public.

Related Government Programs

Military Airlift Command
Contingency Operations Support
Aerospace and Defense Services
Transportation Command Contracts

Risk Flags

Operational Risk
Cost Overrun Potential
Performance Variability
Geopolitical Instability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to BERRY AVIATION, INC.. IGF::OT::IGF AFGHANISTAN FIXED WING AIRLIFT

Who is the contractor on this award?

The obligated recipient is BERRY AVIATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2015-11-30. End: 2016-08-31.

What is Berry Aviation, Inc.'s track record with government contracts, particularly for airlift services?

Berry Aviation, Inc. has a history of securing contracts with various U.S. government agencies, including the Department of Defense, for aviation services. Their experience often includes providing airlift, charter, and related support, particularly in challenging operational environments. Analyzing their past performance, including any contract modifications, disputes, or awards for excellence, would provide a clearer picture of their reliability and capability. Information from contract databases and agency performance reviews can shed light on their track record in delivering services on time and within budget, as well as their compliance with contract terms and safety regulations.

How does the $23.2 million contract value compare to similar airlift services procured by the DoD?

Comparing the $23.2 million contract value requires identifying similar contracts for nonscheduled chartered passenger air transportation, ideally within the same geographic region or operational context (e.g., Afghanistan). Factors such as the duration of the contract (275 days), the type and number of aircraft utilized, passenger and cargo capacity, and the specific operational tempo are critical for a meaningful comparison. Without access to detailed comparative data on similar contracts awarded around the same period, it's difficult to definitively state whether this represents a high, low, or average expenditure. However, the total value suggests a significant operational requirement.

What are the primary risk indicators associated with this type of fixed-wing airlift contract in a contingency environment?

Key risk indicators for this contract include operational risks such as flight delays or cancellations due to weather, mechanical issues, or security threats. Financial risks involve potential cost overruns related to fuel price volatility, unforeseen logistical challenges, or changes in mission requirements. Performance risks encompass the contractor's ability to consistently meet delivery schedules, passenger comfort standards, and safety protocols. Geopolitical risks are also significant, as the operating environment can change rapidly, impacting flight operations and safety. Furthermore, compliance risks related to regulatory adherence and reporting requirements must be managed.

What was the effectiveness of the airlift services provided by Berry Aviation, Inc. under this contract?

Assessing the effectiveness of the airlift services requires access to performance reports, delivery metrics, and user feedback. Key performance indicators (KPIs) would likely include on-time performance, mission completion rates, passenger and cargo delivery accuracy, and adherence to safety standards. Without specific performance data, it is challenging to evaluate how well Berry Aviation, Inc. met the government's requirements. Anecdotal evidence or formal performance reviews, if publicly available, would be necessary to gauge the actual impact and success of the services rendered.

What are the historical spending patterns for nonscheduled chartered passenger air transportation by the DoD?

Historical spending on nonscheduled chartered passenger air transportation by the DoD can fluctuate significantly based on operational needs, troop deployments, and the availability of organic airlift assets. In periods of heightened military activity or in regions where fixed-wing airlift is critical and organic assets are insufficient, spending on chartered services tends to increase. Analyzing past contract awards for similar services, including the number of contracts, their values, and the primary contractors involved, would reveal trends. This data can help contextualize the $23.2 million award within the broader historical expenditure on such services.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HTC71110RR002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1807 AIRPORT DR, SAN MARCOS, TX, 78666

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,554,961

Exercised Options: $23,251,981

Current Obligation: $23,251,981

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71110DR018

IDV Type: IDC

Timeline